Blackrock portfolio at €2.1m offers buyer scope to secure 9.65% yield

Blackrock portfolio at €2.1m offers buyer scope to secure 9.65% yield

Press Release - Ronald Quinlan, The Irish Times

written by QRE Editor / 03 Jul 2019

Agent QRE Real Estate Advisers is inviting offers in excess of €2.1 million for a mixed-use investment in Blackrock, Co Dublin.

The subject portfolio comprises numbers 27-29 and 31-33 Carysfort Avenue. The properties in question include the former Dark Horse licensed premises, the office of Churches’ Estate Agents, and a series of enterprise office units together with two apartments.

The passing rent from the buildings is approximately €149,000 per annum with vacant possession of the former licensed premises and several smaller office suites located on the upper floors.

The portfolio’s €2.1 million guide price equates to a net initial yield of 6.5 per cent after standard purchaser’s costs.

QRE’s Brian Garry says the property offers strong reversionary potential once the pub and vacant office suites are re-let. He says the portfolio has a total estimated rental value in the region of €220,000, which reflects a reversionary yield of approximately 9.65 per cent.

Given the site’s close proximity to both the Frascati and Blackrock Shopping Centres, QRE believes the property will be of interest not only to investors, but also to developers seeking to take advantage of the residential zoning of the buildings. The site comes with the potential for an infill mixed-use or residential-led development.